What Does the Government Shutdown Mean for New York and New Jersey Businesses?

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What Does the Government Shutdown Mean for New York and New Jersey Businesses?

by Dan Brecher on October 2, 2013

The federal government officially entered a partial shutdown as members of Congress failed to reach an agreement on a budget bill Monday night. Around the country, “closed” signs went up at national monuments, and many federal agencies are working with skeleton crews.

But what does the shutdown mean for New York and New Jersey businesses?

Companies that rely on government contracts or conduct direct business with the federal government will certainly feel the impact. Businesses that provide engineering, logistics, support and technical services to federal agencies are already reporting that delayed contracts and payments will impact their bottom line. The severity of the hit depends on how long the shut down lasts. For now, many have delayed hiring new workers, shifted existing employees’ job assignments, and temporarily scaled back operations.

Practically speaking, the shutdown also impacts the availability of government services. For now, both the U.S. Patent and Trademark Office (USPTO) and the Securities and Exchange Commission (SEC) report that they have enough in their reserves to operate for several weeks. However, an extended closure will mean delayed patent applications and IPO registrations.

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Published In: Business Organization Updates, Franchise Updates, International Trade Updates, Mergers & Acquisitions Updates, Securities Updates

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

© Daniel Brecher, Scarinci Hollenbeck | Attorney Advertising

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